Blockport Crypto Exchange Declares Bankryptcy After STO Disaster

Blockport crypto exchange based in Amsterdam has officially declared bankruptcy after the security token offering ended up badly. More on the story we read in our coming altcoin news.

Blockport launched a token sale from April 16 and May 15 in which the platform aimed to raise $5.62 million but it didn’t work as planned. In a blog post from last month, the crypto exchange founder and Chief of Product Sebastiaan Lichter stated that the project’s STO failed to reach the $1.13 million thresholds and he also pointed out that all of the token sale participants will receive their refunds.

Lichter stated:

‘’Since our first equity fundraising (STO) round was unsuccessful, we can’t uphold our planned growth trajectory and therefore have to signifaicantly scale down our operations and team.’’

Very soon after the announcement, the native token of the Blockport crypto exchange BPT crashed and burned. The price of the token dropped down to $0.0063 from the previous $0.094 accumulating a stunning loss of more than 90 percent in under ten hours. The STO could come as a surprise to the crypto community for two reasons.

First, the cryptocurrency exchange had an ICO back in 2018 in January in which the project managed to raise about $15 million. Considering the ICO results, it’s a great surprise that the exchange was not able to reach the new soft cap in the new STO.

Also, as noted in the best cryptocurrency news sites, STOs are a trending fundraising method in the crypto community space since tokens come as additional benefits. With a minimal investment of 500 EUR, the contributors to the Blocksport STO will get a share of the exchange’s profits as well as access to the annual board and management team of the company.

Lichter stated:

“There are multiple internal and external factors that have played a role during our fundraise that had their effect on the overall sentiment and performance of the STO. Summing up, we think that it’s fair to say that the market has spoken, and we now have to deal with the undesired result.’’

Blockport filed for bankruptcy shortly after the STO announcement and with this, the future of crypto exchanges doesn’t look promising. The founder also noted that the platform will shut down by the end of June as the project’s team will make developments in ‘’stealth mode.’’